LONDON -- Britain's ARM Holdings PLC sometimes seems to be on a different planet than the rest of the semiconductor industry.

While chip makers around the world are struggling with falling revenue, ARM has posted a 42% rise in revenue to 37.6 million pounds ($54.6 million) for the third quarter from 26.4 million pounds a year earlier. ARM also said that its net income for the quarter rose 22% to 8.8 million pounds from 7.2 million...